Source: MSCI as of 12/5/13
But beyond the exposure story, I think that IEMG’s early success illustrates that investors are starting to think about emerging markets in a different way. Despite the fact that many investors pulled back from EM this year, some have started to view it as an essential component of their core portfolio. Those who want to maintain an allocation to EM – even during a turbulent time – are starting to seek out new ways of doing so, for example through the increased diversification of IEMG.
Which is one of the great benefits of ETFs – no matter what your objective, there’s likely a fund out there that can help you achieve it.
Dodd Kittsley, CFA, is the Global Head of ETP Research for BlackRock and a regular contributor to the The Blog. You can find more of his posts here.
*Source: BlackRock ETP Research